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Why Low Commissions = High Profit in Algorithmic Trading


In algorithmic trading, profit doesn’t just come from price movement — it comes from structure.
And one of the most overlooked yet critical pieces of that structure is trading commissions.

At FELOS LIMITED, we’ve built a high-volume, low-commission system that allows our bots to stay profitable even in low-volatility environments. In this article, we’ll break down how — and why — low fees = high alpha in the world of AI-powered trading.

💸 The Cost of Execution Adds Up — Fast
Every time you place a trade, you pay a fee.

Sometimes it’s tiny — 0.02%, 0.1%, etc.

But for bots executing thousands of trades per day, those fractions compound quickly.

If your system generates +0.05% edge per trade, but you're paying 0.1% in fees, you're net negative.

Now flip that: if you pay 0.01% in fees and keep 0.05% in profit — your edge is real, repeatable, and scalable.

📈 How Volume Unlocks Fee Reductions
Most top exchanges like Binance, OKX, Bybit operate on a tiered fee system:

The more you trade → the lower your fee tier

Low-tier traders pay 0.1% or more

High-volume institutions can drop to 0.015% or lower

At FELOS, our bot network moves large volumes daily, qualifying us for elite fee tiers.
This gives us an institutional advantage — and we pass that efficiency straight into our profitability models.

🧠 Small Edge × High Frequency = Big Returns
Our bots are designed to:

Capture micro-movements in price

Exploit arbitrage spreads of 0.03–0.15%

Trade hundreds of times across dozens of platforms

These are tight, efficient strategies — and they only work when friction is low.

By minimizing commission friction, we maximize the impact of every trade.

🔁 Margin + Low Fees = Compounding Efficiency
Here’s where it gets interesting:
On large exchanges, higher trading volumes not only reduce fees — they also increase access to margin and lending products.

More margin = more leverage
More leverage = higher position size
Lower fees = less cost per trade

This creates a flywheel effect:

Bigger size → Better fee tier → More margin → Bigger trades → More volume → Repeat

That’s how small wins turn into compounded profitability.

🛠️ FELOS Bots Are Built for This Game
Unlike typical bots that need 2–3% swings to be profitable, ours are optimized for:

0.1–0.5% net gains on tight spreads

Hyper-fast execution and risk management

Platform-specific fee modeling to always choose the lowest-cost route

Our infrastructure is tuned not just for intelligence — but for efficiency.

⚠️ Why Most Retail Bots Fail Here
Retail traders often don’t realize they’re getting crushed by fees:

Trading low-volume assets with wide spreads

Paying 0.2%+ in fees while trying to scalp 0.1%

Overtrading on platforms that penalize them with worse tiers

Without smart fee logic, most strategies bleed out slowly.

✅ Conclusion: Efficiency Is Alpha
In the world of automated trading, the winners aren't just the fastest or the smartest — they’re the most efficient.

At FELOS LIMITED, our bots are engineered not only to predict market movements, but to capture the edge without leaking it to fees.

Because in this game, keeping what you earn is just as important as earning it.
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